Picture: Pexels
Global streaming giants are always on the hunt for new subscribers and ways of cutting down costs. So, it’s refreshing to know that Netflix is considering rolling out a free model with ads. Well, that’s according to Bloomberg.
People familiar with the streamer’s plans told the news outlet that the company’s bold new strategy includes looking to decrease the cost of subscriptions in favour of more ads.
Despite being one of the biggest steamers in the world, Netflix has a problem with ad inventory. They’re not bringing in the big players. When it comes to video ad sales, figures show them barely making the top 10, whereas YouTube and Disney are leading the pack.
“They’ve been slow to scale,” an advertising executive told Bloomberg.
Unfortunately, South African subscribers will not be included. The plan is for Netflix to take the free service to European and Asian markets where subscription rates are not as good as in the US.
The source told Bloomberg: “Netflix has discussed creating free versions of its streaming service in some markets, namely in Europe and Asia, as the company looks for more ways to increase its audience, according to people familiar with its plans.”
Netflix previously tried the free subscription model in Kenya in 2021. Things appeared not to have worked out and the streamer ended the plan in 2023.
The company told Reuters after withdrawing the free service: “We definitely learnt a lot from the test. We are going to continue to offer a variety of other plans.”
Netflix has for years advertised itself as being ad-free. Whether this new proposal will go down well with subscribers remains to be seen.
Words: Fame Frenzy
